POINT-OF-SALE (POS) SYSTEMS
The revenue cycle systems that we have examined so far are used by organizations that extend credit to their customers. Obviously, this assumption is not valid for all types of business enterprises. For example, grocery stores do not usually function in this way. Such businesses exchange goods directly for cash in a transaction that is consummated at the point of sale. POS systems like the one shown in Figure 4-20 are used extensively in grocery stores, department stores, and other types of retail organizations. In this example, only cash, checks, and bank credit card sales are valid. The organization maintains no customer accounts receivable. Inventory is kept on the store’s shelves, not in a separate warehouse. The customers personally pick the items they wish to buy and carry them to the checkout location, where the transaction begins.